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Tuesday, 25 April 2017

Alitalia Teeters Toward Bankruptcy as Staff Spurns Bailout - Bloomberg

Alitalia Teeters Toward Bankruptcy as Staff Spurns Bailout - Bloomberg:

"Alitalia SpA said it exhausted all options after workers voted against job cuts aimed at salvaging the cash-strapped Italian airline, pushing it toward administration for the second time in a decade. A 2 billion-euro ($2.2 billion) recapitalization tied to the savings plan is effectively dead and Alitalia will start appropriate “legal procedures” as funds run out, the Rome-based airline said. The carrier was last put into bankruptcy in 2008 after political and labor opposition thwarted sale plans, and has stumbled on since, with ties to Air France-KLM Group and Etihad Airways PJSC failing to end losses. Chances of a last-minute rescue appear slim. Italy has said it won’t nationalize Alitalia whatever the circumstances. Abu Dhabi-based Etihad, the carrier’s main backer, said the employees’ rejection means “all parties lose,” and that it supports the board’s move to hold a shareholders’ meeting Thursday “to start preparing the procedures provided by law.”"

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